report of the task force on project & program …

Task Force July 28O N
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C L E A D E R S H I P
C O N S T R U C T I O N M A N A G E M E N T
S T A K E H O L D E R
S C H E D U L E M A N A G E M E N T
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P R O J E C T M A N A G E M E N T
K N O W L E D G E M A N A G E M E N T
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MANAGEMENT
R E P O R T O F T H E T A S K F O R C E O N
PROJECT & PROGRAM
Executive Summary 5
Chapter I: Present status of project delivery in India 9
Chapter II: Challenges in the Project Implementation Model in India 11
Chapter III: The framework proposed by the Task-Force 17
Chapter IV: Conclusion 24
Annexure A: Global Project Management Practices 28
Annexure B: Shendra Industrial Area - 32 Greenfield Industrial Smart City Project: A Case Study
Annexure C: Global Project Management Institutions 35
Annexure D: Program Implementation Model under the DMIC Project 38
Annexure E: Benefits of a Program Management Approach 41
Program management is strategic in nature, while project management is tactical in nature. Program management focuses on achievement of the intended strategic economic objectives through the coordination of multiple projects. Project management in contrast focuses on the tactics of planning and execution of the work output. Program management is entirely cross-functional, while project management focuses on a single function or limited cross-functional alignment at best. Program management integrates the individual elements of the projects in order to achieve a common objective. Project management, on the other hand is focussed more on accomplishment of deliverables, milestones and tasks from a single project.
Facilitating cross-learning is one of the major benefits of program management approach. Experiences in dealing with risks and lessons learnt are well communicated across the spectrum of projects in a program through networks, share points, staff etc. This approach allows reducing the costs and delays related to dealing with risks and issues since these will be repeatedly dealt with across all the projects within a program as well as adopting best practices.
The Government of India has been working towards de-bottlenecking infrastructure projects through numerous initiatives and NITI Aayog has also been advocating various guidelines for improving the performance of infrastructure projects. In line with these initiatives, NITI Aayog had constituted the Task Force on Project Management with an objective to lay down a plan of action advocating short-term and long-term strategies for improving project and Program management practices and aligning it with the global best practices.
Accordingly, the recommendations from the Task Force have clearly highlighted the need to develop a national policy framework for project and program management, with emphasis on strengthening the government’s ability to effectively manage its portfolio of projects and programs.
The Task Force recommendations underline the need for more efficiency and transparency in procurement and enabling public-private investments through appropriate risk sharing, investing more efforts at pre-planning stage, augmenting organizational skillsets, improving stakeholder management, leveraging technology and establishing robust project governance. Furthermore, it is important that Project Management discipline is introduced in the curriculum of engineering, management and other technical courses in order to prepare young students to be “Industry Ready”.
I sincerely hope that this report would be useful not only for Public Sector bodies, PSE officials and all key stakeholders in the infrastructure fraternity but also academics and industry interested in the subject. While this report sets a starting base for corrective actions, given the investments at stake, it is imperative to maintain continuity in reviewing the projects and set a governance framework for institutionalisation of Project and Program management discipline within the functioning of nodal agencies/ ministries for continuous improvement.
Dated- 14-06-2019 Place- New Delhi
FOREWORD As India marches ahead in its quest to become a global economic powerhouse, there is a felt
need for a paradigm shift in our approach towards the existing industrial ecosystem. As per the Economic Survey 2017-18, India will require investments of around $4.5 trillion by 2040 to develop the infrastructure for sustaining its economic growth.
Infrastructure development has always been a challenge due to a multitude of issues which impact these projects. Each project is unique and needs a structured approach to manage its complexity. Therefore, it is high time to realise and appreciate the fact that the need of the hour is a coherent execution approach that forms a crucial link between the portfolios of projects and their component strategic disciplines.
The major problem is successfully dealing with the multiplicity of issues that obstruct the smooth execution of the project, namely- cost over-run, time over-run, environmental clearances, land acquisition, regulatory approvals and the like. This problem arises due to the fact that individual project managers are working independently on different verticals with lack of interdisciplinary coordination. This need for visibility and control over several projects simultaneously is where program management comes into focus.
At such a high level where economic transformation of an entire industrial ecosystem is involved, the executing authorities need individual projects to come together seamlessly and integrate with each other in order to provide the required economic transformation within the desired timescale.
Mega projects are complex and the technologies and management approaches involved are continuously evolving to adapt to the changing needs of the economy. In order to achieve the required economic progress, numerous inter-connected large-scale projects involving multifarious disciplines need to be developed and executed in parallel. The major issues involved include efficient resource allocation across these projects and ensuring that collectively these projects will provide the desired economic outcomes.
Program management integrates the individual elements of the projects in order to achieve a common objective. It is entirely cross-functional in its approach, managing across the various disciplines of constituent projects such as engineering, designing, planning, procurement, construction and finance as well as various components like power, water, highways, waste management, telecommunication, multi-use development etc.
Amitabh Kant
NITI Aayog, Parliament Street, New Delhi-110001
, , - 110001

Program management is strategic in nature, while project management is tactical in nature. Program management focuses on achievement of the intended strategic economic objectives through the coordination of multiple projects. Project management in contrast focuses on the tactics of planning and execution of the work output. Program management is entirely cross-functional, while project management focuses on a single function or limited cross-functional alignment at best. Program management integrates the individual elements of the projects in order to achieve a common objective. Project management, on the other hand is focussed more on accomplishment of deliverables, milestones and tasks from a single project.
Facilitating cross-learning is one of the major benefits of program management approach. Experiences in dealing with risks and lessons learnt are well communicated across the spectrum of projects in a program through networks, share points, staff etc. This approach allows reducing the costs and delays related to dealing with risks and issues since these will be repeatedly dealt with across all the projects within a program as well as adopting best practices.
The Government of India has been working towards de-bottlenecking infrastructure projects through numerous initiatives and NITI Aayog has also been advocating various guidelines for improving the performance of infrastructure projects. In line with these initiatives, NITI Aayog had constituted the Task Force on Project Management with an objective to lay down a plan of action advocating short-term and long-term strategies for improving project and Program management practices and aligning it with the global best practices.
Accordingly, the recommendations from the Task Force have clearly highlighted the need to develop a national policy framework for project and program management, with emphasis on strengthening the government’s ability to effectively manage its portfolio of projects and programs.
The Task Force recommendations underline the need for more efficiency and transparency in procurement and enabling public-private investments through appropriate risk sharing, investing more efforts at pre-planning stage, augmenting organizational skillsets, improving stakeholder management, leveraging technology and establishing robust project governance. Furthermore, it is important that Project Management discipline is introduced in the curriculum of engineering, management and other technical courses in order to prepare young students to be “Industry Ready”.
I sincerely hope that this report would be useful not only for Public Sector bodies, PSE officials and all key stakeholders in the infrastructure fraternity but also academics and industry interested in the subject. While this report sets a starting base for corrective actions, given the investments at stake, it is imperative to maintain continuity in reviewing the projects and set a governance framework for institutionalisation of Project and Program management discipline within the functioning of nodal agencies/ ministries for continuous improvement.
Dated- 14-06-2019 Place- New Delhi (Amitabh Kant)
FOREWORD As India marches ahead in its quest to become a global economic powerhouse, there is a felt
need for a paradigm shift in our approach towards the existing industrial ecosystem. As per the Economic Survey 2017-18, India will require investments of around $4.5 trillion by 2040 to develop the infrastructure for sustaining its economic growth.
Infrastructure development has always been a challenge due to a multitude of issues which impact these projects. Each project is unique and needs a structured approach to manage its complexity. Therefore, it is high time to realise and appreciate the fact that the need of the hour is a coherent execution approach that forms a crucial link between the portfolios of projects and their component strategic disciplines.
The major problem is successfully dealing with the multiplicity of issues that obstruct the smooth execution of the project, namely- cost over-run, time over-run, environmental clearances, land acquisition, regulatory approvals and the like. This problem arises due to the fact that individual project managers are working independently on different verticals with lack of interdisciplinary coordination. This need for visibility and control over several projects simultaneously is where program management comes into focus.
At such a high level where economic transformation of an entire industrial ecosystem is involved, the executing authorities need individual projects to come together seamlessly and integrate with each other in order to provide the required economic transformation within the desired timescale.
Mega projects are complex and the technologies and management approaches involved are continuously evolving to adapt to the changing needs of the economy. In order to achieve the required economic progress, numerous inter-connected large-scale projects involving multifarious disciplines need to be developed and executed in parallel. The major issues involved include efficient resource allocation across these projects and ensuring that collectively these projects will provide the desired economic outcomes.
Program management integrates the individual elements of the projects in order to achieve a common objective. It is entirely cross-functional in its approach, managing across the various disciplines of constituent projects such as engineering, designing, planning, procurement, construction and finance as well as various components like power, water, highways, waste management, telecommunication, multi-use development etc.
A Task Force was created under the Chairmanship of CEO, NITI Aayog with the objective of a focused result-oriented approach and effective delivery of projects within time and budget for Central/ State Government and Public-Sector Enterprises (PSEs). It comprises of representatives of following Departments/Ministries/entities.
The composition of the Task Force
• Shri Amitabh Kant, CEO, NITI Aayog - Chairman
• Secretary or nominee (not below the rank of Joint Secretary or equivalent), Ministry of Railways - Member
• Secretary or nominee (not below the rank of Joint Secretary or equivalent), Ministry of Road Transport and Highways - Member
• Secretary or nominee (not below the rank of Joint Secretary or equivalent), Ministry of Housing and Urban Affairs - Member
• Secretary or nominee (not below the rank of Joint Secretary or equivalent), Ministry of Power - Member
• Secretary or nominee (not below the rank of Joint Secretary or equivalent), Department of Economic Affairs, Ministry of Finance - Member
• Secretary or nominee (not below the rank of Joint Secretary or equivalent), Department of Expenditure, Ministry of Finance - Member
• Secretary or nominee (not below the rank of Joint Secretary or equivalent), Department of Financial Services, Ministry of Finance - Member
• DG or nominee (not below the rank of Joint Secretary or equivalent), Bureau of Indian Standards - Member
• Chairman or nominee (not below the rank of Joint Secretary or equivalent), National Highway Authority of India - Member
• Chairman or nominee (not below the rank of Joint Secretary or equivalent), NTPC - Member
• Chairman or nominee (not below the rank of Joint Secretary or equivalent), Oil and Natural Gas Corporation - Member
• CEO or nominee (not below the rank of Joint Secretary or equivalent), Delhi Mumbai Industrial Corridor Development Corporation Ltd. - Member
• CMD or nominee (not below the rank of Joint Secretary or equivalent), L&T - Member
• Country Director, Project Management Institute, India- Member
• Shri Adesh Jain, Chairman, International Institute of Projects and Program Management - Member
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The mandate of the Task – Force
a. To analyze the performance of Public sector/PPP Projects during the last decade and take stock of the present situation of Public-Sector/PPP projects.
b. To draw conclusions from the Performance Analysis with special focus on identifying the problems faced by the public sector/PPP projects and factors that impede their performance.
c. To lay down a plan of action suggesting short-term, medium-term and long-term strategies for improving project management practices in the public sector/PPP commensurate with the best international practices.
d. To ensure that appropriate systems, tools & techniques, processes and controls are in place at the departmental or government levels for managing projects; minimizing risk, limiting project duplication, encouraging stakeholder consultation, integrating decision-making across agencies and monitoring/evaluation of output-outcomes.
The Terms of Reference of the Task – Force
The Task - Force will deliberate, brainstorm and give recommendations on the following focus areas:
a) To suggest policy, procedural and institutional measures including examining the requirement of separate legislation and/or designating a separate agency/inter-agency
forum/office to facilitate better project management of Public-Sector/ PPP projects.
b) To establish and oversee the adoption of standards/methodology, policies and guidelines including Project Management Policy Framework of knowledge areas for program and project management.
c) To examine and create the necessary wherewithal for developing skilled Project Management professionals, including institutionalizing project management in vocational education, training and recruitment, promotion etc., and establishing a dedicated Institute including laying down guidelines, course-curriculum, syllabus, qualifications etc. for developing a cadre of PM professionals.
d) To build competence of contracting firms and public-sector organizations through the adoption of contract clauses and processes for improving governance including transparency and accountability, efficiency and effective use of public resources with reference to the best practices.
e) To coordinate and act as liaisons between State and Central Governments/Entities to raise massive awareness amongst all the stakeholders about the importance of good project management practices and resolving project management issues, debottlenecking and accelerating project implementation of public sector/PPP projects.
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The Infrastructure sector is one of the key drivers of economic growth across the world, and India is no exception. The sector is responsible for propelling India's overall development and enjoys priority focus from Government for initiating policies that would ensure time-bound creation of world-class infrastructure in the country.
The Government of India has set ambitious growth plans and committed massive investment of close to INR 5.97 lakh crore1 in the infrastructure sector in the current fiscal year. Further, it is estimated that approximately INR 304 lakh crore2 of investment is required in the Indian infrastructure sector till 2040 in order to sustain the country’s development.
Accordingly, the Government has launched various critical infrastructure mega programs like Power for All, Bharatmala (entailing an estimated cost of INR 5.35 lakh crore for Phase 1), Sagarmala (entailing a total outlay of INR 8 lakh crore), Smart Cities mission (entailing a total investment of INR 203,172 crore), Housing for All, Swachh Bharat Mission, AMRUT, etc. with an objective to build world-class infrastructure in the country. However, the track record of completing projects on time is abysmal. There are multiple challenges attributed to the same including regulatory clearances, land acquisition, Resettlement &
Rehabilitation amongst others. The Govt. has set up various bodies to tide over such obstacles and is continuing to improve them. However, one aspect which needs attention is the successful adoption of globally accepted Project and Program Management practices. The country is in the transformation phase and with such large-scale initiatives planned, there is a growing demand for structured project and program management practices in order to manage these programs and implement them successfully. Project and Program management practices, when implemented successfully, can bring in synergies, integration and a common language to all these complex program initiatives like Sagarmala, Bharatmala, Industrial Corridors, Smart Cities Mission, etc.
This can be well substantiated from the recent report of the Ministry of Statistics and Program Implementation (MOSPI) released in December 2018 which has reviewed 1424 central infrastructure sector projects worth INR 150 crore and above. It has been observed that more than 25% of these central sector projects are delayed beyond their scheduled date of completion, and there has been a significant cost overrun of around INR 3.17 lakh crore in these projects.
Clearly, Project and Program management best practices need to be maximized when resources are limited so
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EXECUTIVE SUMMARY they can effectively respond to changing project requirements. Delayed projects also mean cost escalation and delay in the benefits of the projects to society.
India will need 70 lakh3 skilled project managers in the next 10 years in order to avoid delays and escalation of budgets in projects in key industries like Roads, Railways, IT, and manufacturing. To overcome this issue, the Government has to play a more proactive role.
Initially, project management practices were more widely adopted by the private sector, however, now even the public sector is opening up to these practices. Many public-sector organizations are placing emphasis on training programs and strengthening their existing project management units and appointing professionals. “Lack of clarity of benefits” and “Lack of client-led demand in India” are the main barriers to the adoption of project management practices in the country.
As India gears up and prepares for a stronger and resilient economy, Project Management will be the enabler. Project management capabilities must be improved for the country to get better returns from public investment in infrastructure and in the social sectors as well. Project management, with a view to deliver on time and within budget, is a learnable capability that can be institutionalized, as demonstrated by the development experiences of USA, UK, UAE, and China.
In addition, at the current pace of growth, the nation requires something more than just leadership, experience and conventional methods - there needs to be an emphasis on innovative thinking, instantaneous communication, adaptability of thoughts and diverse approach.
Given the fact that each of the projects are unique, complex, involve multiple stakeholders, and require significant funds and time to complete, traditional ways of managing projects have proven to be ineffective. Therefore, we must recognize the fact that Projects need refurbishment with modernized tools and techniques and acclimatize with agility, disruptive thinking, diversity of experiences, age, genders and geography, real-time communication, real-time data management, social media and internet of things and above all skilled workforce. Project management is an art and science of converting vision into reality and to achieve this, a ‘Project Mindset’ must be nurtured amongst all in organizations.
Accordingly, it is suggested to develop a National Project / Program Management Policy Framework (NPMPF). NPMPF can refer to the already available global best standards on Project / Program management, and suggest procedures and guidelines for effective project execution of public sector and PPP projects. These procedures and guidelines should be made part of all future contracts. NPMPF can also assist in
introducing project management course in the senior secondary level curriculum, which would help in strengthening the existing framework to build an Industry ready workforce. It can introduce a complete course on project management in the core curriculum of engineering, management and other technical institutes as well as diploma/degree programs at graduate and post graduate level in consultation with UGC and AICTE.
At the same time, it is also important to ensure that Project Management is one of the key skills for competency development and a part of Performance Management System for all professionals at managerial as well as specialist roles in Central and State Governments as well as in construction/contracting firms involved
in executing public sector projects.
While developing NPMPF, the government can leverage the existing global standards and Certification program for professionals in project management which are widely accepted, and adopted. This, in turn, addresses the industry demand of such skilled professionals in the country.
While the constitution of nodal body through the legislative framework has been agreed to as a long term solution, in view of the time required for the various procedures/approvals involved as well as the pressing need for immediate implementation of remedial measures for on-going projects/schemes, in the interim the mandate is decided to be undertaken through Quality Council of India (QCI).
1 Union budget 2018-19 Report 2 Economic Survey 2017-18, Ministry of Finance, Govt. of India
they can effectively respond to changing project requirements. Delayed projects also mean cost escalation and delay in the benefits of the projects to society.
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3 Project Management Institute (PMI) report – “Project Management Job Growth and Talent Gap 2017-2027”
they can effectively respond to changing project requirements. Delayed projects also mean cost escalation and delay in the benefits of the projects to society.
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A. Approach to Projects Delivery in India
Project delivery method is defined as a process by which the components of design and construction, including the roles and responsibilities, a sequence of activities, cost of materials and equipment, and labor are combined to deliver a project. Conventionally, infrastructure projects have been split up into multiple separate work packages. A work package is a group of related tasks within a project, which can also be defined as sub-projects within a larger project.
Project delivery systems are defined by the official involvement of participants/contractors, level of integration, and contractual relationships between project parties. Some of the project delivery systems widely used in the conventional Indian approach are:
• Construction Management at Risk: (Guaranteed Maximum Price / Open Book Contract)
o A delivery method that entails a commitment by the construction manager to deliver the project within a guaranteed maximum price.
• Design-Build:
o The owner manages only one contract with a single point of responsibility.
o The designer and the contractor work together, from the beginning as a team to provide unified project recommendations to fit the owner’s schedule and budget.
• Design-Bid-Build:
o The owner selects and enters into a contract with a design professional/architect.
o The architect fully creates the design and provides ‘bid documents’ that are made available to general contractors for competitive bids.
o The contractor so appointed then builds the project.
• Engineer-Procure-Construct (EPC):
o The Engineer and Construction contractor will carry out the detailed engineering design of the project, procure all the equipment and raw materials required and then, will deliver a functioning facility or asset to their client.
• Engineer-Procure-Construction Management (EPCM):
o The EPCM contractor provides engineering, procurement and construction management services, but the employer directly employs construction contractors to build the project. The EPCM contractor usually manages the construction contractors for the employer and is
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CHAPTER I PRESENT STATUS OF PROJECT DELIVERY IN INDIA
more like a professional consultant than a contractor, providing design and construction advice (rather than building the project itself).
B. Key Issues of Conventional Approach in India
A number of issues have been encountered with the current methods of project delivery across different sectors. Some of the key challenges faced during project delivery include uncertainties in the land acquisition process and regulatory approvals, lack of comprehensive upfront planning and risk management, and most importantly, low maturity of project management processes to adequately plan for such factors. To counter this, significant front-end efforts should be invested in project pre-planning/initiation in order to reduce uncertainties/ risk factors during execution and enhance the reliability on project budget and schedule.
Other issues which hamper timely completion of projects include, but are not limited to, the non-availability of raw materials, unavailability of skilled workers (masons, carpenters, etc.), lack of water and power supply, an incomplete supply of drawings and frequent changes in design. Due to the local issues and lack of proper project planning and control, the effective project delivery schedule gets delayed creating an overall impact on the economy.
One of the major issues faced in implementation of urban infrastructure projects includes the challenge of lack of comprehensive planning and management by different Urban Local Bodies (ULBs), as well as lack of capacity in local bodies.
In brief, poor project management costs the Government in a number of ways, including:
• Additional expenditure burden due to increased costs, which crowds out funding for more deserving projects,
• Creating a culture of acceptance of delays and avoidable costs, which causes more cases to occur,
• Economic burden due to delayed return in investments,
• The increased cost of procurement due to monetization of higher risks perceived by contractors such as delay and scope creep associated with publicly funded projects.
It is a well-established fact that, structured project management practices would not only maximize the limited resources and effectively respond to changing project requirements but also bring in skills such as project scoping, planning, scheduling, risk assessment, team building and quality control for getting complex projects completed with desired quality, on time and within budget.
A. Approach to Projects Delivery in India
Project delivery method is defined as a process by which the components of design and construction, including the roles and responsibilities, a sequence of activities, cost of materials and equipment, and labor are combined to deliver a project. Conventionally, infrastructure projects have been split up into multiple separate work packages. A work package is a group of related tasks within a project, which can also be defined as sub-projects within a larger project.
Project delivery systems are defined by the official involvement of participants/contractors, level of integration, and contractual relationships between project parties. Some of the project delivery systems widely used in the conventional Indian approach are:
• Construction Management at Risk: (Guaranteed Maximum Price / Open Book Contract)
o A delivery method that entails a commitment by the construction manager to deliver the project within a guaranteed maximum price.
• Design-Build:
o The owner manages only one contract with a single point of responsibility.
o The designer and the contractor work together, from the beginning as a team to provide unified project recommendations to fit the owner’s schedule and budget.
• Design-Bid-Build:
o The owner selects and enters into a contract with a design professional/architect.
o The architect fully creates the design and provides ‘bid documents’ that are made available to general contractors for competitive bids.
o The contractor so appointed then builds the project.
• Engineer-Procure-Construct (EPC):
o The Engineer and Construction contractor will carry out the detailed engineering design of the project, procure all the equipment and raw materials required and then, will deliver a functioning facility or asset to their client.
• Engineer-Procure-Construction Management (EPCM):
o The EPCM contractor provides engineering, procurement and construction management services, but the employer directly employs construction contractors to build the project. The EPCM contractor usually manages the construction contractors for the employer and is
more like a professional consultant than a contractor, providing design and construction advice (rather than building the project itself).
B. Key Issues of Conventional Approach in India
A number of issues have been encountered with the current methods of project delivery across different sectors. Some of the key challenges faced during project delivery include uncertainties in the land acquisition process and regulatory approvals, lack of comprehensive upfront planning and risk management, and most importantly, low maturity of project management processes to adequately plan for such factors. To counter this, significant front-end efforts should be invested in project pre-planning/initiation in order to reduce uncertainties/ risk factors during execution and enhance the reliability on project budget and schedule.
Other issues which hamper timely completion of projects include, but are not limited to, the non-availability of raw materials, unavailability of skilled workers (masons, carpenters, etc.), lack of water and power supply, an incomplete supply of drawings and frequent changes in design. Due to the local issues and lack of proper project planning and control, the effective project delivery schedule gets delayed creating an overall impact on the economy.
One of the major issues faced in implementation of urban infrastructure projects includes the challenge of lack of comprehensive planning and management by different Urban Local Bodies (ULBs), as well as lack of capacity in local bodies.
In brief, poor project management costs the Government in a number of ways, including:
• Additional expenditure burden due to increased costs, which crowds out funding for more deserving projects,
• Creating a culture of acceptance of delays and avoidable costs, which causes more cases to occur,
• Economic burden due to delayed return in investments,
• The increased cost of procurement due to monetization of higher risks perceived by contractors such as delay and scope creep associated with publicly funded projects.
It is a well-established fact that, structured project management practices would not only maximize the limited resources and effectively respond to changing project requirements but also bring in skills such as project scoping, planning, scheduling, risk assessment, team building and quality control for getting complex projects completed with desired quality, on time and within budget.
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The latest MOSPI Flash Report December 2018, containing information on the status of 1424 Central Sector Infrastructure Projects costing Rs. 150 crore and above, brings to light the number of Project delays and cost overrun amount, and the same is alarming.
Cost overrun: Total original cost of implementation of the 1424 projects was Rs.18,17,469.76 crore and their anticipated completion cost is likely to be Rs. 21,33,649.81 crore, which reflects an overall cost overrun of Rs. 3,16,180.05
crores (i.e. 17.40% of the original cost). The expenditure incurred on these projects until December 2018 is Rs. 8,06,997.78 crore, which is 37.82 % of the anticipated cost of the projects.
Time overrun: During the reference month, out of 1424 projects, 384 projects are delayed with respect to their original schedules and 69 projects have reported additional delays vis-à-vis their date of completion reported in the previous month. Of these 69 projects, 16 are Mega Projects costing Rs. 1000 crore and above.
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CHAPTER II CHALLENGES IN THE PROJECT IMPLEMENTATION MODEL IN INDIA
Trends in Projects over the Last Five Years:
MOSPI – Project Implementation Overview –December 2018
N o
o f
P ro
je ct
313323
120
489
326
242
592
317330
634
429
253
328
686
APR 2015 APR 2016 APR 2017 APR 2018 Dec 2018
(NICPP) may be created. Similar to the Institute of Chartered Accountants of India (ICAI), NICPP may become the nodal institution to create a resource pool of competent project professionals.
• It is proposed to have enough human & financial resources for Project Management support.
• The Program may be analyzed based on a number of projects & sub-projects and prioritized based on the national importance, amount of investment, impact on economy and society at large, etc.
• The Standards adopted by BIS could be the platform for the Project management related issues. Moreover, it could also function as the mechanism for implementation of large-scale projects (Central/State) in the country at an apex level through an authoritative body, which will also target the integration of existing monitoring mechanisms like PRAGATI/OCMS, etc.
B. To establish and oversee the adoption of standards/methodology, policies and guidelines including Project Management Policy Framework of knowledge areas for program and project management.
Project/ Program Management has grown to be accepted as a formal profession across the world. In the UK, project managers were given Royal Chartered status in 2016. In the USA, Program Management Improvement and Accountability Act (PMIAA) is
being implemented throughout the U.S. Federal Government. The focus is on the development of a standards-based model for program management, ensuring responsibility and accountability for delivery of program results, increasing program performance and results by establishing practices of project/ program management, establishing a program management career field and consequently improving effectiveness and efficacy of the Government.
In India, presently, there is no formal approach to project management hence the focus should be on developing a robust methodology to develop competent project management professionals where they go through a structured way of acquiring knowledge followed by its practical application in the industry and government institutions/sectors. Diploma/ degree in Project Management which combines Learning to the application at the workplace followed by measuring the benefits and documenting the best practices should be encouraged enabling the creation of a large number of professionally competent project managers.
• It is necessary to first develop National Project Management Policy Framework in long run and a mandate on the implementation of the policy followed by creation of a nodal body “National Institute of Chartered Project Professional (NICPP)” under its aegis. The nodal body may assume the
An overview of the best of the Global Project Management Practices adopted by various countries is given in Annexure A.
Adoption of ISO 21500:2012 needs to be specified in the RFQ conditions while inviting tenders. Moreover, it’s important that Contracting firms involved in project construction have qualified/ certified project management professionals at the time of commencement of works on awarded contracts. Certifications offered by globally recognized bodies (Annexure C) besides proven experience in delivering large scale programs, may be specified in the contract conditions for the key staff of the field project organization of the contractor.
Accordingly, it is important to set up a nodal body for continuous evaluation of projects for which investment approvals have been provided. The proposed body can track and monitor the performance or execution status of the projects and suggest key action or decision points by various authorities. This may also include periodic review of the further investment
decision based on the project performance till date. Project management maturity assessment level of organization need to be assessed specifically keeping in view the working of CPSUs.
This body can also critically appraise project integration issues which require multiple stakeholder involvement such as Central Ministries, State Governments, other quasi-government bodies etc. and facilitate early resolution by highest level escalation such as PMO/PMG.
The body should also focus on adoption of Project / Program Management practices since it is more critical to mega projects as the level and importance of stakeholder engagement is more complex and requires a much higher level of skill and capability. A case study of one such mega complex project involving multiple infrastructure projects within and various stakeholders - Shendra Industrial Area, a Greenfield Industrial Smart City Project - is discussed in Annexure B.
The Task Force suggests the following with respect to the mandate given:
A. To suggest policy, procedural and institutional measures including examining the requirement of separate legislation and/or designating a separate agency/inter-agency forum/office to facilitate better project management of Public-Sector/ PPP projects.
It is important to understand that large projects involve multiple stakeholders, and require significant funds and time to complete, consequently the traditional ways of managing projects would prove ineffective. Project management practices, implemented from day one, would help in getting complex projects completed and delivered with quality, on time and within budget. Accordingly, it is suggested to develop a National Project/ Program Management Policy Framework (NPMPF) considering the specific issues and requirements of the nation as a whole – such as contracts in public /private/ state sector, infrastructure, Health, Safety and Environmental issues, CSR requirements, etc.
Furthermore, it is proposed that a centralized committee may be formed which may be called the “Committee on Project/ Program Management (CPM)”, comprising of the members of existing Task Force on Project
Management to develop NPMPF and its implementation, for review & monitoring in a few public-sector projects undertaken in the country across sectors. The said committee may be assisted by a team of experts in infrastructure, project finance, delivery and legal sectors with expertise in project and program management as well as members from MoSPI and PMG/ PRAGATI. The proposed committee will work with different Government Ministries/Departments and other stakeholders.
• It is proposed that during the initial phase (as per the directions of Cabinet Secretariat), the Committee on Project/ Program Management including the team of professionals under them may function under the aegis of NITI Aayog. However, in the eventuality that the system of centralized agency is established by such enabling legal/policy frameworks, the committee and team of professionals may be given a recognized status and function independently under the appropriate Ministry/Department of Govt. of India as notified.
• In the UK, Royal Chartered Status is given to the project management profession, similarly a separate institution as National Institute of Chartered Project Professional
It has been observed that the current Project / Program models being followed in India are not effective in ensuring timely and within budget completion of projects. In the preceding section, the key issues arising due to the existing models followed have been highlighted. Insufficient attention, time and expertise are invested in project design and planning. The quality, experience and competence of the Project Design and Management Consultant selected to prepare the Detailed Project Report (DPR) needs to be properly ascertained. In addition, the time spent initially on site and market investigation, exploring technology, finance and implementation
options, evaluating procurement options, etc., would eventually save on costs and time. Deep involvement of the project organization (Organization sponsoring the project) in the DPR preparation is a key factor in project success.
Land acquisition and securing all statutory clearances for the projects are critical conditions precedent for the start of any project. Any delay due to challenges results in a delayed start, and more often than not, delayed completion. As a principle, no project contracts may be awarded without possession of at least 90% contiguous land of the entire land and the statutory clearances/NOCs for project
12
construction and operation. Several organizations like NHAI (National Highway Authority of India) have laid down policies regarding the same. More importantly, stakeholder management needs to be strengthened for land acquisition and other regulatory approvals.
Scope and Design creep are the other causes widely stated for project delays. Changes in scope or design midway or even at the start cause time and cost variations. It is therefore essential to consider all options thoroughly and spend time on designs exhaustively at the time of DPR preparation. From experience with mega infrastructure projects, locking down the scope as one would really add to cost because every change reopens elements of the construction contract to renegotiation. A program management focus (Annexure E) recognizes that things will be learned as an individual construction project gets executed and that those learnings should be incorporated into the next phase of construction projects. So instead of one contract, there may be a master contract and then subcontracts for each phase of work. This would enable the government to maintain more control and better management of risks.
The quality of project and program management team overseeing the projects is also essential to regulate. The project/ program managers must be approved by the project implementing agency, which in turn will also evaluate and assess their capability based on the requisite hard and soft skills to deliver the project.
Proper communication channels between the implementing agency and the contractor must be established, through weekly meetings between the two parties where key issues and delays are addressed. A healthy relationship between the agency and the contractor is beneficial, which can be achieved through training and orientation of the staff before the project begins.
ISO31000 standards on Enterprise Risk Management can be introduced. The use of established risk management methodologies at regular intervals enables identification of issues and risks associated with the projects enabling timely decision by the relevant authorities. It is important to ensure optimal sharing of risks between parties.
Timely completion of projects must be incentivized to encourage the establishment of a culture in which effective project delivery occurs. Moreover, weekly Project Management meetings of owner or customer with the consultants and contractors are the key factor in ensuring effective communications, timely detection of critical issues and their resolution. This will also help in preventing disputes.
Further, competencies and capability of contracting firms involved in the construction or development of projects need to be strengthened for the timely and on-budget completion of projects. There is a need to ensure that contracting firms adopt appropriate & global management standards.
S. Sector Projects on Delayed Projects Additionally Additionally
No. the monitor w.r.t original delayed delayed
(No.) schedule (No.) during the Mega
month under Projects (No.)
2 Railways 367 94 8 3
3 Petroleum 137 33 16 4
4 Power 95 56 19 7
5 Coal 97 36 1 0
6 Urban Development 58 23 0 0
7 Steel 13 9 0 0
8 Health & Family Welfare 20 5 1 0 9 Telecommunications 6 4 3 0 10 Fertilizers 6 2 1 0
11 Shipping & Ports 6 3 0 0
12 Atomic Energy 4 4 0 0 13 Mines 5 0 1 0
14 Civil Aviation 1 1 0 0 15 Heavy Industry 2 1 0 0
16 Defense Production 2 1 0 0
Total 1424 384 69 16
leadership role in creating massive awareness of the imperatives of the project management profession and also act as a custodian of the best practices in various sectors of industry and governments both national and international.
• This nodal body will also be the nationally registered body working together with Ministry of Human Resource Development (MHRD) that will formalize the field of project management to mainstream graduate level and advanced level courses in universities (Management, Engineering etc.)
• The nodal body may also work as the think tank for the Project/ Program Management, as the central repository of knowledge for all major public sector/private Projects under various sectors for review and monitoring. It should partner with existing institutions in this domain to leverage the strength and be able to go to market quicker. It could encourage organizations to carry out maturity assessment levels specific to Indian environment and in particular CPSEs/PPP.
• As mentioned earlier, project management practices need refurbishment from time to time as the profession evolves; and therefore; any certification in this profession also has to be constantly evolving.
Its scope of work could be as follows:
(i) Preparation of policy framework for Project/ Program Management.
(ii) Project/ Program development & planning including - structuring & financing, monitoring and controls.
(iii) Reporting of projects/ programs progress as per the requirement of the apex committee (Dashboard reporting for top authority and Detailed reports for respective functions).
(iv) Project/ program management methodologies & best practices, which are also adopted by BIS.
(v) Developing and managing project/ program policies, procedures, templates and other shared documentation in consultation with leading global associations.
(vi) Create a Knowledge Management System on Project/ Program Management and managing shared resources across the project/ programs.
(vii) Oversight on adoption of Project and Program Management Framework.
(viii) Coordination communications across projects/ programs stakeholders.
(ix) Monitor issues, facilitate for removal of bottlenecks and recommend practices on how to manage pitfalls.
(x) Institutionalize the field of Project/ Program Management in the country.
(xi) Conduct appropriate courses and award degree etc. on Project Management as an autonomous body.
• The nodal body constituted under NPMPF should refer to the global best standards on Project / Program management; suggest procedures, and guidelines for effective project execution of public sector and PPP projects. These procedures and guidelines should be made part of all future contracts. Simultaneously, a separate Project/ Program Management delivery team can be assigned to audit the delivery issues with mega projects and recommend "fixes" to the existing projects. This will ensure the knowledge transfer in the laggard public-Sector/ PPP projects. This will also enhance the project management capabilities of public sector/ PPP projects. Simulation models can also be used for establishing cause and effect relationship of various decisions in a simulated environment.
• The NPMPF should also publish annual best practices guideline based on national/ global practices and project learnings. The guidelines shall have a mandatory and optional category of recommendations such as the following:
o Waterfall methodology to be adopted for executing any publicly funded project with preference to PPP(BOT), PPP(Annuity) followed by EPC/ Lump Sum/ Turnkey basis. The award of contract based on item rates to be discouraged and avoided.
o A robust two-stage bidding process comprising of an RFQ for shortlisting of bidders with a proven track record and thereby obtaining the most competitive financial proposal from the shortlisted
bidders to be adopted.
o All the projects should go through gate stages.
o At the bidding stage, the scope of work should be well defined and include sufficient information in the bid to limit the scope of change orders, risks etc. thus avoiding cost overruns and schedule delays.
o Shareholder agreement, State support agreements be included in the contract to ensure timely availability of land/ infrastructure and other clearances etc. for project execution.
o Bidder pre-qualification criteria should ensure that the Best Available Technology (BAT) is employed in any given project.
o Project Management Consultant (PMC) with a proven record and certified project managers, to review the detail project design in parallel. The design /very critical components of design should also be reviewed and commented upon by an Institute of Eminence in parallel to design consultant. The review and comments should be provided within a defined timeline of (15) days and be limited to compliance with the specifications and standards provided in the bidding documents. The risk and responsibility of compliance of the design would continue to vest with the contractor irrespective of whether the Authority has reviewed the same or not.
o Payments should be milestone/ outcome based starting with the completion of a stage of construction work with payment after supply and Installation of equipment. Early achievements of key targets should be incentivized.
C. To examine and create the necessary wherewithal for developing skilled Project Management professionals, including institutionalizing project management in vocational education, training and recruitment, promotion etc., and establishing a dedicated Institute including laying down guidelines, course-curriculum, syllabus, qualifications etc. for developing a cadre of PM professionals.
It is important to introduce project and program management in the core curriculum of engineering, management and other technical institutes. The government can help in expediting the process by pushing the project management courses in the Government institutes of national repute. Once these institutes make the change others across the country are expected to follow. At the same time, it is important to introduce project management course at the senior secondary level also. It will help youth to strengthen their preparation for work and be “Industry Ready”. Take, for instance, more than 100 institutes in China offer courses specific to project management whereas this number is less than 10 in India, at present. We should also start looking at encouraging Universities in India to
establish accredited degree programs as in the case of China.
• Project Management should be recognized as a discipline of graduate and postgraduate courses. These courses are required to be tailor-made to the Indian context enriched with the experiences faced by the project implementation authorities on-ground.
• The curriculum to address following knowledge areas for project management and should consider the project from concept to commissioning encompassing all life cycle phases i.e. Conceptualize, Plan, Organize, Implement, Control, Integrate, Deliver/closeout and Knowledge Leverage:
o Stakeholder Management
o Project Delivery system such as PPP, Design /Build, EPC etc.
o Project Finance
o Scope Management
o Time Management
o Cost Management
o Quality Management
o Integration Management
o Safety Management
o Corporate Social Responsibility
o Soft Dimensions covering Leadership, Motivation, Conflict Resolution, Problem Solving, Presentation skills etc.
• The nodal body constituted under NPMPF will have tie-ups with nodal agencies at State levels to strengthen project and program management discipline, competency and capability of officials engaged in critical projects.
• The nodal body will design various course modules which could suit engineering colleges as well as management schools across the country.
• The nodal body will publish Best Practices in consultation with leading global institutions (Annexure C) as well as will have enough resources of its own for the supervision of its implementation on the ground.
• Once the National Project Management Policy Framework is in place, it can lay down guidelines for human resources in the public sector for projects and programs, including recruitment and training. Recruitment policies to projects may outline assessment framework covering professional and personal competencies, knowledge, global certification and experience. For better project management in Indian industry, project management Certifications, Diploma and Degree programs should also address the specific requirement of India.
D. To build competence of contracting firms and public-sector organizations through the adoption of contract clauses and processes for improving governance including transparency and accountability, efficiency and effective use of public resources with reference to the best practices.
The nodal body constituted under NPMPF can also be authorized to review the intricacies of various public-sector/private/PPP contracts within definite time periods and evolve the best contracting practices through consultation of stakeholders as implementing agencies, contractors and consultants. As an example, the contractual framework under the DMIC Project is given in Annexure D. The expert pool under the nodal body could study the best practices in contract management followed across the world including World Bank and other international institutions. NITI Aayog may undertake to prepare a model Request for Proposal (RFP) document for engagement of Project/ Program Management Consultant (PMC).
It is necessary that the best practices evolved for India should be based on specific requirements from the local context through the integration of various governance parameters. At the same time, it is important to ensure that Training on Project Management is a part of the performance indicator for professionals at managerial as well as specialist roles in Central and State Governments as well as in construction/contracting firms involved in public sector projects.
Moreover, it is important to include "Project/ Program Management" as a core competence in RFQ documents while awarding projects as well as while hiring Project Management Consultant (PMC). For example, PMC should demonstrate experience of managing Projects/ Programs as per global best practices and should have certified project managers in the team before hiring them.
E. To liaison and coordinate with State and Central Governments/Entities to raise massive awareness amongst all the stakeholders about the importance of good project management practices and resolving project management issues, debottlenecking and accelerating project implementation of public sector/PPP projects.
Comprehensive Project/Program management principles can be applied across the projects/programs. In order to have massive awareness of good project management across all stakeholders, short term programs that range from 1 - 2 days duration to 3 - 5 days should be evolved in consultations with the various stakeholders thereby creating a project mindset across all levels in respective nodal authorities. This would help them understand how the project/program will unfold and get them to help with risk identification, communication planning etc. In fact, some fundamental concepts using simple language covering time, Cost and Quality may be introduced at the
school and college levels. The practical approach to project/ program management teaching should be adopted so that the society at large understands the concepts and benefits from the same.
In conclusion, it is extremely important to understand that the right people with the right skillset are essentially required for making any project a success. Managing these high-value public sector projects requires a great deal of time, skill, efforts, which all the more highlights the need for adopting project management discipline within the day to day functioning.
Given the fact that Government / Public Sector is increasingly challenged to do more with less, it will need these project & program management skills to manage the complex projects and programs with quality, on time and within budget. It is important that a standardized approach is followed to augment these skills in officials with different levels of experience across Central/ State Governments.
Accordingly, it is recommended that:
• Project Management be included as one of the key skills for Competency development of all officials and it should be a part of their Performance Management System.
• Skills of all officials working on projects be enhanced through in-house training activities and sustained thrust on Project/ Program Management.
(NICPP) may be created. Similar to the Institute of Chartered Accountants of India (ICAI), NICPP may become the nodal institution to create a resource pool of competent project professionals.
• It is proposed to have enough human & financial resources for Project Management support.
• The Program may be analyzed based on a number of projects & sub-projects and prioritized based on the national importance, amount of investment, impact on economy and society at large, etc.
• The Standards adopted by BIS could be the platform for the Project management related issues. Moreover, it could also function as the mechanism for implementation of large-scale projects (Central/State) in the country at an apex level through an authoritative body, which will also target the integration of existing monitoring mechanisms like PRAGATI/OCMS, etc.
B. To establish and oversee the adoption of standards/methodology, policies and guidelines including Project Management Policy Framework of knowledge areas for program and project management.
Project/ Program Management has grown to be accepted as a formal profession across the world. In the UK, project managers were given Royal Chartered status in 2016. In the USA, Program Management Improvement and Accountability Act (PMIAA) is
being implemented throughout the U.S. Federal Government. The focus is on the development of a standards-based model for program management, ensuring responsibility and accountability for delivery of program results, increasing program performance and results by establishing practices of project/ program management, establishing a program management career field and consequently improving effectiveness and efficacy of the Government.
In India, presently, there is no formal approach to project management hence the focus should be on developing a robust methodology to develop competent project management professionals where they go through a structured way of acquiring knowledge followed by its practical application in the industry and government institutions/sectors. Diploma/ degree in Project Management which combines Learning to the application at the workplace followed by measuring the benefits and documenting the best practices should be encouraged enabling the creation of a large number of professionally competent project managers.
• It is necessary to first develop National Project Management Policy Framework in long run and a mandate on the implementation of the policy followed by creation of a nodal body “National Institute of Chartered Project Professional (NICPP)” under its aegis. The nodal body may assume the
An overview of the best of the Global Project Management Practices adopted by various countries is given in Annexure A.
Adoption of ISO 21500:2012 needs to be specified in the RFQ conditions while inviting tenders. Moreover, it’s important that Contracting firms involved in project construction have qualified/ certified project management professionals at the time of commencement of works on awarded contracts. Certifications offered by globally recognized bodies (Annexure C) besides proven experience in delivering large scale programs, may be specified in the contract conditions for the key staff of the field project organization of the contractor.
Accordingly, it is important to set up a nodal body for continuous evaluation of projects for which investment approvals have been provided. The proposed body can track and monitor the performance or execution status of the projects and suggest key action or decision points by various authorities. This may also include periodic review of the further investment
decision based on the project performance till date. Project management maturity assessment level of organization need to be assessed specifically keeping in view the working of CPSUs.
This body can also critically appraise project integration issues which require multiple stakeholder involvement such as Central Ministries, State Governments, other quasi-government bodies etc. and facilitate early resolution by highest level escalation such as PMO/PMG.
The body should also focus on adoption of Project / Program Management practices since it is more critical to mega projects as the level and importance of stakeholder engagement is more complex and requires a much higher level of skill and capability. A case study of one such mega complex project involving multiple infrastructure projects within and various stakeholders - Shendra Industrial Area, a Greenfield Industrial Smart City Project - is discussed in Annexure B.
The Task Force suggests the following with respect to the mandate given:
A. To suggest policy, procedural and institutional measures including examining the requirement of separate legislation and/or designating a separate agency/inter-agency forum/office to facilitate better project management of Public-Sector/ PPP projects.
It is important to understand that large projects involve multiple stakeholders, and require significant funds and time to complete, consequently the traditional ways of managing projects would prove ineffective. Project management practices, implemented from day one, would help in getting complex projects completed and delivered with quality, on time and within budget. Accordingly, it is suggested to develop a National Project/ Program Management Policy Framework (NPMPF) considering the specific issues and requirements of the nation as a whole – such as contracts in public /private/ state sector, infrastructure, Health, Safety and Environmental issues, CSR requirements, etc.
Furthermore, it is proposed that a centralized committee may be formed which may be called the “Committee on Project/ Program Management (CPM)”, comprising of the members of existing Task Force on Project
Management to develop NPMPF and its implementation, for review & monitoring in a few public-sector projects undertaken in the country across sectors. The said committee may be assisted by a team of experts in infrastructure, project finance, delivery and legal sectors with expertise in project and program management as well as members from MoSPI and PMG/ PRAGATI. The proposed committee will work with different Government Ministries/Departments and other stakeholders.
• It is proposed that during the initial phase (as per the directions of Cabinet Secretariat), the Committee on Project/ Program Management including the team of professionals under them may function under the aegis of NITI Aayog. However, in the eventuality that the system of centralized agency is established by such enabling legal/policy frameworks, the committee and team of professionals may be given a recognized status and function independently under the appropriate Ministry/Department of Govt. of India as notified.
• In the UK, Royal Chartered Status is given to the project management profession, similarly a separate institution as National Institute of Chartered Project Professional
It has been observed that the current Project / Program models being followed in India are not effective in ensuring timely and within budget completion of projects. In the preceding section, the key issues arising due to the existing models followed have been highlighted. Insufficient attention, time and expertise are invested in project design and planning. The quality, experience and competence of the Project Design and Management Consultant selected to prepare the Detailed Project Report (DPR) needs to be properly ascertained. In addition, the time spent initially on site and market investigation, exploring technology, finance and implementation
options, evaluating procurement options, etc., would eventually save on costs and time. Deep involvement of the project organization (Organization sponsoring the project) in the DPR preparation is a key factor in project success.
Land acquisition and securing all statutory clearances for the projects are critical conditions precedent for the start of any project. Any delay due to challenges results in a delayed start, and more often than not, delayed completion. As a principle, no project contracts may be awarded without possession of at least 90% contiguous land of the entire land and the statutory clearances/NOCs for project
construction and operation. Several organizations like NHAI (National Highway Authority of India) have laid down policies regarding the same. More importantly, stakeholder management needs to be strengthened for land acquisition and other regulatory approvals.
Scope and Design creep are the other causes widely stated for project delays. Changes in scope or design midway or even at the start cause time and cost variations. It is therefore essential to consider all options thoroughly and spend time on designs exhaustively at the time of DPR preparation. From experience with mega infrastructure projects, locking down the scope as one would really add to cost because every change reopens elements of the construction contract to renegotiation. A program management focus (Annexure E) recognizes that things will be learned as an individual construction project gets executed and that those learnings should be incorporated into the next phase of construction projects. So instead of one contract, there may be a master contract and then subcontracts for each phase of work. This would enable the government to maintain more control and better management of risks.
The quality of project and program management team overseeing the projects is also essential to regulate. The project/ program managers must be approved by the project implementing agency, which in turn will also evaluate and assess their capability based on the requisite hard and soft skills to deliver the project.
Proper communication channels between the implementing agency and the contractor must be established, through weekly meetings between the two parties where key issues and delays are addressed. A healthy relationship between the agency and the contractor is beneficial, which can be achieved through training and orientation of the staff before the project begins.
ISO31000 standards on Enterprise Risk Management can be introduced. The use of established risk management methodologies at regular intervals enables identification of issues and risks associated with the projects enabling timely decision by the relevant authorities. It is important to ensure optimal sharing of risks between parties.
Timely completion of projects must be incentivized to encourage the establishment of a culture in which effective project delivery occurs. Moreover, weekly Project Management meetings of owner or customer with the consultants and contractors are the key factor in ensuring effective communications, timely detection of critical issues and their resolution. This will also help in preventing disputes.
Further, competencies and capability of contracting firms involved in the construction or development of projects need to be strengthened for the timely and on-budget completion of projects. There is a need to ensure that contracting firms adopt appropriate & global management standards.
13
leadership role in creating massive awareness of the imperatives of the project management profession and also act as a custodian of the best practices in various sectors of industry and governments both national and international.
• This nodal body will also be the nationally registered body working together with Ministry of Human Resource Development (MHRD) that will formalize the field of project management to mainstream graduate level and advanced level courses in universities (Management, Engineering etc.)
• The nodal body may also work as the think tank for the Project/ Program Management, as the central repository of knowledge for all major public sector/private Projects under various sectors for review and monitoring. It should partner with existing institutions in this domain to leverage the strength and be able to go to market quicker. It could encourage organizations to carry out maturity assessment levels specific to Indian environment and in particular CPSEs/PPP.
• As mentioned earlier, project management practices need refurbishment from time to time as the profession evolves; and therefore; any certification in this profession also has to be constantly evolving.
Its scope of work could be as follows:
(i) Preparation of policy framework for Project/ Program Management.
(ii) Project/ Program development & planning including - structuring & financing, monitoring and controls.
(iii) Reporting of projects/ programs progress as per the requirement of the apex committee (Dashboard reporting for top authority and Detailed reports for respective functions).
(iv) Project/ program management methodologies & best practices, which are also adopted by BIS.
(v) Developing and managing project/ program policies, procedures, templates and other shared documentation in consultation with leading global associations.
(vi) Create a Knowledge Management System on Project/ Program Management and managing shared resources across the project/ programs.
(vii) Oversight on adoption of Project and Program Management Framework.
(viii) Coordination communications across projects/ programs stakeholders.
(ix) Monitor issues, facilitate for removal of bottlenecks and recommend practices on how to manage pitfalls.
(x) Institutionalize the field of Project/ Program Management in the country.
(xi) Conduct appropriate courses and award degree etc. on Project Management as an autonomous body.
• The nodal body constituted under NPMPF should refer to the global best standards on Project / Program management; suggest procedures, and guidelines for effective project execution of public sector and PPP projects. These procedures and guidelines should be made part of all future contracts. Simultaneously, a separate Project/ Program Management delivery team can be assigned to audit the delivery issues with mega projects and recommend "fixes" to the existing projects. This will ensure the knowledge transfer in the laggard public-Sector/ PPP projects. This will also enhance the project management capabilities of public sector/ PPP projects. Simulation models can also be used for establishing cause and effect relationship of various decisions in a simulated environment.
• The NPMPF should also publish annual best practices guideline based on national/ global practices and project learnings. The guidelines shall have a

report of the task force on project & program …

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